The Downmarket Wine Business Is So Tough, the Winemaker Had to Destroy Inventory; More Problems Are Likely

It is tempting to chase a fortune in wine production, but such dreams are easily shattered.

That is literally what happened to investors in Sydney-listed Treasury Wine Estates this week, when it announced it would destroy "old and aged" inventory already sold to U.S. distributors in an effort to reduce supply. Along with other measures to dial back U.S. supply, the actions will result in a 160 million Australian dollars...